Started in 1960 by James and Tom Monaghan as a small pizza store in Ypsilanti, Michigan, Domino’s Pizza has grown to more than 10,000 corporate and franchised stores in 70 countries. Domino’s Pizza is recognized as the second largest pizza chain in the United States after Pizza Hut, and the largest worldwide.8 Domino's had global retail sales of over $7.4 billion in 2012, comprised of over $3.5 billion in the U.S. and nearly $3.9 billion internationally. In the third quarter of 2013, Domino's had global retail sales of nearly $1.8 billion, comprised of $849 million in the U.S. and $935 million internationally. 9 Focus on Technology
From April 2011 to April 2012, Domino’s reached an impressive $2 Billion in US digital from its apps on platforms such as Kindle Fire, Android, Windows 8 phone, and iPhone – which now cover nearly 95% of the U.S. smartphone market. Digital sales, which include mobile and computer ordering, now make up 40% of all Domino's sales, an increase from 30% in 2012. 9 Problem Statement
Building on the success of Domino’s product rebranding and technological innovations, the company’s goal is to implement effective strategies that will increase its percentage of sales driven through the company’s mobile apps and online website.
Strengths of the Organization
Domino’s Pizza is the second largest pizza chain in the United States and the world leader in pizza delivery, with more than 10,000 corporate and franchised stores in over seventy countries (Corporate). Furthermore, Domino’s Pizza has been the recipient of Pizza Today magazine’s “Chain of the Year” award three times back to back in 2010 and 2011 (Corporate). Over the years, Domino’s has launched many industry innovations to keep them at the top of the ladder, namely the HeatWave bag, Domino’s Tracker, and the Domino’s Pizza app (Corporate). This company has maintained great name brand recognition and a strong distribution system (Corporate). Additionally, Domino’s has maintained its status as a socially responsible company by continuing its tenth annual Thanks & Giving Campaign for St. Jude Children’s Research Hospital (Press). Weaknesses of the Organization
Despite its many strengths, Domino’s Pizza also has some weaknesses. Domino’s has a history of past indiscretions with some of its employees. In 2009, two Domino’s employees damaged the brand by pulling a prank that showed them violating health code sanitation standards (Clifford, 2009). Moreover in 2010, a North Carolina woman found a racial slur on her Domino’s receipt (ABC, 2010). Domino’s has long since repaired its public image but now it must be extra careful to maintain customer loyalty.
Opportunities in the Environment
An opportunity for Domino’s pizza is social media exposure. This exposure can generate more attention from the target market as they are the most likely to be represented on social media websites. Threats in the Environment
Some threats for Domino’s Pizza include the fact that some of their products, specifically their sandwiches and desserts, may not seem healthy especially to a health-conscious consumer. As of now, economic setbacks such as wage increases have affected Domino’s Pizza because some British employees have been complaining about poor wages (Karphal, 2013). Competitor, and current industry leader Pizza Hut, offers many of the same products as Domino’s. The company must determine the most effective method to set its products above its competitors. Market Analysis
The pizza restaurant industry is continuing to rise at a rate of about 1.6% (Barrett, 2012). Pizza Hut, Domino’s Pizza, and Papa John’s rank first in sales and unit counts among all the different chains (Barrett 2012). The pizza industry is a $40 billion industry that makes up approximately eleven percent of all restaurants in the nation (Franchise, 2013). Ninety-three percent of Americans eat at least one pizza per month in the...
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